We’re hearing a lot about payment terms these days. It seems that more people are having to wait longer to get paid so we want to talk about it.
Historically most parties land around a net 30 payment term but lately we’re hearing about net 60 and sometimes even net 90.
Pro tip: When negotiating a deal, always make sure to clarify when the clock starts. Is it from the moment the contract is fully executed, when the invoice is sent or when the campaign is complete? Nailing down these details can shave 30+ days off of your waiting period.
What’s causing this change? Many attribute it to cash flow problems and antiquated payment systems. Let’s also not forget that although influencer marketing feels pretty “pandemic-proof” that it only takes one late payment to trigger a trickle down effect.
It would be great to see a shift in mindset on a few things. For starters, let’s plan ahead. We can easily backtrack when payments are due to when funds need to be made available. Let’s be firm with our deadlines and hold ourselves and partners accountable. The reality is that the people who are paid last, the lowest ones on the totem pole, are the influencers themselves (followed closely by their managers who get paid once their clients do). The irony is that this same duo is regularly forced to hustle hardest to hit those last minute deadlines (p.s. why are deadlines always so last minute?).
To the influencers who regularly come out of pocket and wait the longest to get paid, we see you. To the managers who advocate for them but don’t have money trees, we hear you. Without influencers there would be no content and without managers there would be no structure.
Let’s prioritize this conversation a bit more. Money is already a sensitive topic. Let’s not strain an otherwise healthy business relationship simply because expectations aren’t set. There are real human beings on the other end of that deal. People are still struggling to make ends meet after a disruptive economic year. And even if they’re not, let’s all just be ethical.
Overcommunicate, under promise and over deliver.
JESSY GROSSMAN
Founder of Women in Influencer Marketing and CEO of Tribe Monday
Jessy Grossman is a long time entrepreneur in the digital media space. She’s passionate about supporting women in business and being at the forefront of innovation. She’s been quoted in Forbes and was awarded a spot in the “Influencer Top 50” by Talking Influence. In less than two years she created one of the fastest growing talent agencies in the country. Amidst unprecedented growth, she sold the multi-six-figure agency and pivoted to focus on her long-time passion project: Women in Influencer Marketing (better known as WIIM). Founded in 2017, today WIIM is the premiere professional organization for those who work with influencers. The community offers networking and new business opportunities, career services, continuous education and more. Jessy also does consulting, advising and influencer marketing recruiting with her company Tribe Monday. You can find inspiring stories and more about Jessy on the WIIM Podcast. Check out iamwiim.com and tribemonday.com for more information.
